With the relocation of Chinese crypto miners, Russia considers new energy tariffs

After the industry moved from nearby China to the country, the Russian Ministry of Energy is seeking to introduce special electricity prices for cryptocurrency miners.

Russian Energy Minister Nikolai Shurginov announced on Wednesday that the authorities are developing a new framework to distinguish tariffs between general-purpose and cryptocurrency mining, local news agency RBC Report October 13th.

Shurginov stated that cryptocurrency miners in Russia should not consume electricity at residential electricity prices and pointed out:

“We cannot allow miners to take advantage of this situation at the expense of lower residential electricity bills […] In order to maintain the reliability and quality of power supply, we believe that it is necessary to prohibit miners from consuming electricity at residential electricity prices. “

According to reports, there has been an explosive increase in energy consumption in some regions of Russia, allegedly due to Chinese miners leaving the country in a National crackdown on cryptocurrencies.

According to reports, the Russian Irkutsk region, about 1,700 kilometers away from China Seen Its energy consumption rate is nearly 160% higher than last year. Igor Kobzev, governor of Irkutsk Region, pointed out that the energy consumption of the district has “avalanche growth”, accusing illegal crypto-mining activities that have been aggravated by the outflow of Chinese miners.

The Irkutsk region is one of the largest regions in Siberia, rich in energy resources, and has many large hydropower stations in cities such as Irkutsk, Ust-Ilimsk and Bratsk.The area has Some of BitRiver’s crypto mining data centers, The country’s largest crypto mining hosting service provider.

related: Data center operators “no problem” against Russia’s new cryptocurrency crackdown

BitRiver founder and CEO Igor Runets told Cointelegraph that the company fully supports the latest initiatives of the Department of Energy:

“This is fair and economically reasonable. In addition, it will help miners enter the legal field, so the country can take the first step to regulate the industry, which will ultimately lead to transparency in the entire industry.”

Runets stated that the company pays the electricity bills of its data centers at the prices of corporate customers, which are “2.5 to 3 times higher than those paid by individuals.”

Russia has Become one of the top locations For Bitcoin (Bitcoin) Mining activities after the surrender of Chinese miners. According to the Cambridge Bitcoin Power Consumption Index, Bitcoin miners in Russia account for 11% of the global distribution of Bitcoin mining power, second only to Kazakhstan and the United States.